Markets move higher at the open ahead of Fed Chair Powell’s testimony

Stocks are in the green to start the day as investors await testimony from Fed Chair Powell on how the Federal Reserve will address inflation.

Video Transcript

JULIE HYMAN: All right, we got the opening bell on this Thursday morning. Ethan Allen is ringing the opening bell. And CEO Farooq Kathwari is going to be joining us in just a little bit to talk about the outlook for the furniture industry. We've gotten some sort of some troubling signals from that industry, right? The likes of Target and its home goods operations, but on the other hand, Williams-Sonoma came out--

BRAD SMITH: La-Z-Boy.

JULIE HYMAN: --better than estimated. La-Z-Boy yesterday came out better than estimated. So Farooq should be able to give us a good insight into that. Our opening bell coverage sponsored by FlexShares. And as we get underway this morning, it looks like we have a higher open once again. But the Dow the weak link here, and it was the weak link yesterday, too, which was interesting.

The NASDAQ today up 3/4 of 1%. I've heard some debate as of late as to whether tech is going to be the thing to lead us out of the bear market, right? It led us up. It led us down. But is it going to be the thing this time that leads the market back up?

BRAD SMITH: When you have enough strategists continuing to kind of pound the pavement and say that long-term, if you have a time horizon that is five, seven, 10 years out, then tech is still where you want to be, and that this is one of those kind of entry points that people may look at, both institutional investors and retail investors, to set those positions for the long-term.

And yeah, there is some truth to where they might see some of the kind of PE ratios certainly pulled back off of what they were even on the forward PE ratio kind of basis earlier this year, where they were highly expensive even compared to some of their forward earnings. Now that we've seen that pullback, does that create an entry point? And could tech be the entry point, or at least, that sector that leads us back higher? But for right now--

JULIE HYMAN: We'll see.

BRAD SMITH: --there's still a lot of dead [? cats ?] out there.

JULIE HYMAN: Yeah, most definitely.